5 Simple Ways to Increase Your Credit Score
Your credit score isn’t just a number — it’s a snapshot of your financial health. It can affect everything from getting approved for an apartment to the interest rate on your car loan.
The good news? You have the power to improve it. With consistent habits and the right strategies, you can build a stronger credit profile and open new financial doors.
Here are five simple ways to increase your credit score, no matter where you’re starting from.
1. Pay Your Bills on Time — Every Time
Your payment history makes up about 35% of your credit score, making it the most important factor. Even one late payment can hurt your score, so consistency is key.
Quick tip:
Set up automatic payments or text reminders to stay on track.
If you’re struggling to make a payment, reach out to your lender before the due date — many offer hardship options or extensions.
Small steps like this protect your credit and show responsibility to future lenders.
2. Keep Your Credit Utilization Low
Your credit utilization ratio measures how much of your available credit you’re using. The ideal number? Below 30%, but if you can, aim for 10% or less.
Example:
If your credit limit is $1,000, try to keep your balance under $300 — or even $100.
You can also:
Pay down balances early.
Make multiple payments throughout the month.
Ask for a credit limit increase (only if you can manage it responsibly).
3. Don’t Close Old Credit Accounts
Older accounts strengthen your credit history and show long-term responsibility. Closing them can shorten your credit age, which may drop your score.
Instead:
Keep older cards open, even if you use them rarely.
Put a small, recurring charge on the card (like Netflix or Spotify) and pay it off monthly to keep it active.
4. Limit New Credit Applications
Every new credit application triggers a hard inquiry, which can temporarily lower your score. Too many inquiries in a short time can signal risk to lenders.
How to protect your score:
Only apply for new credit when necessary.
If rate shopping (for a car or mortgage loan), keep all inquiries within a 14-day window — they’ll count as one.
Being intentional with applications keeps your score stable while you grow.
5. Build a Mix of Credit Types
Lenders like to see you can handle different types of credit — such as credit cards, student loans, car loans, or a mortgage.
If you’re new to credit or rebuilding:
Try a secured credit card or a credit-builder loan from your bank or credit union.
Make small purchases and pay them off monthly to build positive history.
Over time, this healthy mix shows lenders you’re capable and consistent.
Final Thoughts: Take Control of Your Credit Story
Improving your credit score isn’t about perfection — it’s about progress. Every on-time payment, every reduced balance, every mindful choice adds up.
Your credit score doesn’t define your worth, but it can shape your opportunities. With patience and guidance, you can write a new financial story — one built on confidence and control.
Ready to build a better relationship with your money?
At The Circle Financial Wellness, I help individuals and families build healthy money habits, strengthen their credit, and achieve lasting financial peace.
